Small business owners are the cornerstone of the Republican’s plan to make the Bush tax cuts permanent. They argue the tax cuts help small business owners to exist, survive, expand, and hire more employees. Republicans contend that allowing the tax cuts to expire will harm businesses and hurt the economy. But according to some of those business owners, they prefer the cuts to go away.
Michael Teahan is a small business owner based in California. His company imports parts for espresso machines from Europe and sells them to coffee businesses in the United States. Teahan runs his business with one other person, and makes about $1 million in sales annually. He clears about $250,000 in salary and gets a tax break of $12,000, thanks to the Bush tax cuts for the wealthy. But Teahan says the tax cuts do not affect his business decisions.
According to the Huffington Post, “Tax cuts for the wealthy, according to Teahan, will do nothing to bolster his firm. They won’t affect his hiring decisions, they won’t encourage him to buy new equipment or help him move into a bigger warehouse. He says all of those decisions — the nuts and bolts of actually running a small company — depend on the [sic] his customers’ economic conditions, not his personal tax rate.”
Teahan went on to say, “What we do in business, how we spend our money, how we allocate our resources — that has very little to do with tax policy. I map my business based on my customers, and what my customers want to buy, and what they can afford to buy.”
Teahan is an anomaly. Most small business owners don’t come close to making $250,000 so they don’t benefit from the tax cut. Rick Poore, another small business owner said of the tax cuts, “We are fed by our consumers, not by our tax breaks. If you drive more people to my business, I will hire more people. It’s as simple as that. If you give me a tax break, I’ll just take the wife to the Bahamas.”
The business owners are not impressed with the tax cuts in relation to their businesses. Small business owners are able to get tax breaks on things that affect their bottom line such as equipment, labor, and rent. The Bush tax cuts affect the owner’s profit; how much he or she gets to keep.
The owners say the government believes businesses won’t hire because they may pay more taxes on more money. But the owners say they base hiring on whether they can make more money, not what the government share is.
So while the Republicans are working to increase the deficit by $700 billion, small business owners are telling Congress to get rid of the Bush tax cuts. The GOP says the people know what to do with their money better than the government. Well, the people are telling you what they want to do. Are you listening?
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